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US Stocks End Mixed After GDP Misses Expectations

--Stocks fall after lower-than-expected GDP growth

--GDP grew at 2.8% rate in 4Q 2011; lower than expected, but highest since 2Q

2010

--Ford misses estimates; Starbucks off on guidance

By Chris Dieterich and Christian Berthelsen

OF DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- U.S. stock indexes ended mixed Friday after a reading on domestic economic growth fell short of expectations.

The Dow Jones Industrial Average closed down 74 points, or 0.6%, to 12660. The Standard & Poor's 500 fell 2.1 points, or 0.2%, to 1316, while the Nasdaq Composite Index rose 11 points, or 0.4%, to 2817.

The nation's gross domestic product, the value of all goods and services produced, expanded at an annual rate of 2.8% from October to December, up from 1.8% in the third quarter. Though the data showed the U.S. economy expanded at the fastest pace since the second quarter of 2010, the reading fell short of the expected 3% rate.

The materials and health care sectors led the S&P while utilities and consumer staples lagged. Chevron fell the most among blue chips, down 2.5% after the company announced refining profits fell in the fourth quarter as margins suffered from higher oil prices and weak fuel demand. Alcoa was the biggest gainer on the Dow, up 0.7%.

In Europe, the Stoxx Europe 600 fell 1%, as the cost of insuring Portugal's debt against default climbed to a record. Traders remained cautious despite claims that Greece was close to a deal with private creditors to restructure its debt.

Asian bourses were mostly higher, with Hong Kong's Hang Seng Index rising 0.3% . Japan's Nikkei was down 0.1%.

Gold futures edged up 0.3%, to $1,731.80 a troy ounce, while crude-oil prices were off 0.1% at $99.56 a barrel. The dollar lost ground against the euro and the yen.

In corporate news, Facebook could file as early as next week for an initial public offering that would raise $10 billion and value the company at $75 billion to $100 billion, with Morgan Stanley as the lead manager of the deal, The Wall Street Journal reported Friday afternoon.

Meanwhile, Ford Motor lost 4.2% after the auto maker's fourth-quarter earnings missed estimates, as a result of slower sales in Europe and production losses caused by the flooding in Thailand, although revenue came in above expectations.

Starbucks fell 1% after the coffee seller's fiscal first-quarter earnings and revenue exceeded expectations, but its second-quarter earnings outlook was below forecasts.

Solutia soared 41% after the specialty-chemicals company said it agreed to be acquired by Eastman Chemical in a cash-and-stock deal valued at about $3.38 billion. Eastman Chemical climbed 7%.

-By Christian Berthelsen, Dow Jones Newswires; 212-416-2381; christian.berthelsen@dowjones.com

  (END) Dow Jones Newswires
  01-27-121630ET
  Copyright (c) 2012 Dow Jones & Company, Inc.